finance charges added to avg daily balance

[cdcutlip]

i just noticed that my avg daily balance in one category has increased the last several months, even though there has been no purchases made to my account. as i looked closer, it was going up by just about the same amount as my finance charges for the month.

is that right? i always thought the finance charges weren't used in calculating your avg daily balance, that your payment was first applied to finance charges, then to paying down the balance for whatever category has the lowest apr.

am i missing something?

thanks.

chris c